Minnesota Gov. vetoes bill to limit online lottery sales

Minnesota Governor Mark Dayton vetoed a bill Friday that would have done away with online instant-play lottery games and barred sales of tickets via gas pumps or ATMs.

His decision ends suspense over a bill that passed with big bipartisan majorities on the final day of the legislative session. The Democratic governor confessed to being torn over the strong message sent by lawmakers and his fear that the legislation was partly motivated by other gambling interests looking to protect their turf.

Dayton said in his veto letter that the Minnesota Lottery has taken steps to modernize operations in response to changes in technology. He said that voters approved the creation of a state-run lottery in 1988, and the Legislature created a statute that gives the lottery broad powers.

"With all due respect ... the authorization for the Lottery stems directly from the people of Minnesota," Dayton wrote, later adding, "It appears to me that the Executive Director is operating within the scope of his legislatively-established authority."

The Minnesota Lottery launched its first online games in 2010, but drew the ire of lawmakers when it took the scratch-off franchise to the Internet this winter. Legislators say they should have been consulted first and feared it would make gambling too impulsive.

"In effect what the governor is saying is, it's OK for his lottery director, without consent of the Legislature ... to sell lottery tickets anywhere, anyhow in the state of Minnesota," said Rep. Joe Hoppe, R-Chanhassen. "I don't think that's right, and I think an overwhelming majority of the Legislature agrees with me, and this will not stand."

In his letter, Dayton urged the lottery director to re-establish relationships with lawmakers before the next Legislative session.

The bill wouldn't have done away with all Internet sales. The lottery would have been permitted to continue online subscription sales of tickets for draw games such as Powerball and Mega Millions. Still in their infancy, the electronic scratch-off sales have brought in small sums compared with the paper version sold in convenience stores and other brick-and-mortar locations.

Lawmakers wrote the bill so the lottery would have until late October to shut off the virtual sales. But a key lottery vendor said it would contemplate suing the state for breach of contract.

Lottery officials argued the games are an important branding tool and a way to market tickets to a younger audience accustomed to doing everything on their tablets, mobile phones and computers.

The ease of access is what troubled some legislators, who said the lottery was greatly expanding its scope. Lottery profits are split among environmental program accounts and the state's general treasury, so lawmakers built potential losses from the restrictions into their recently enacted budget.

Hoppe predicted the governor's decision will lead to a strong anti-lottery bill next session. Because the Legislature has adjourned, lawmakers can't attempt a veto override.

"We were more measured and more moderate, and now the governor has thrown all that out the window," he said.

Among those watching the bill were charities that sell pull-tabs and American Indian tribal casinos that voiced alarm over where the lottery might go next.

The curbs on sales at gas pump terminals and ATMs were pushed by some gas station owners out of concern that customers wouldn't bother coming into the store for snacks, beverages and other goods if they could buy tickets straight from the pump.

In weighing his action this week, Dayton told reporters he wanted to give appropriate deference to lawmakers. The bill passed with veto-proof majorities, but because it happened as session ended, the Legislature didn't have a chance for an override.

A message left with the lottery director wasn't immediately returned Friday.

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Nice to see you standing up for lottery players being able to spend their money as they choose. Even though your veto may be overridden by your state legislature, your principled stand on this issue is much-appreciated!

Nice to see you standing up for lottery players being able to spend their money as they choose. Even though your veto may be overridden by your state legislature, your principled stand on this issue is much-appreciated!

yup..no doubt

"..."With all due respect ... the authorization for the Lottery stems directly from the people of Minnesota."

yup..the people

Now if we could only get other politicians to understand this concept of encating things the people really want,the world will be a better place.

"..."With all due respect ... the authorization for the Lottery stems directly from the people of Minnesota."

yup..the people

Now if we could only get other politicians to understand this concept of encating things the people really want,the world will be a better place.

The other thing I don't like with this entire affair is that the legislature seems to want to over-regulate the lottery, but if something else -- like the school system -- suddenly started doing something without legislative approval, that would somehow be OK. And I'm sure that all goes back to certain politicians feeling they have moral authority over people GAMBLING. That drives me nuts. People should be able to do whatever they heck they want to with THEIR MONEY. Just like school kids should be able to eat whatever the heck their parents want them to eat. Whenever government regulates, PEOPLE LOSE FREEDOM. End of rant.

I love how they are using being too accessible as an excuse. The day they allowed lottery tickets to be sold at gas station is the day they needed to retire "too accessible" as an excuse. I get shopkeepers not liking this, but I'm trying to figure out what the real issue is from the politicians. They were okay with regular online lottery sales but have a problem with scratch offs online? Seems like much ado about nothing.

As a resident of the state of Minnesota since before lotteries came upon the American landscape this is less about the Governor supporting lotteries as it is each branch of government flexing their power.

All three branches of government are held by the Democratic party. This is mostly sibling rivalry since they have no one to fight (Republicians) they have to establish their power within their own party.

Re gambling, the state legislator is owned by the Indian casinos. They dictate gambling within the state. All the politicians are beholding the the tribes for so much money it is not a fair fight.

Buying lottery tickets at the gas pump when it is 20 degrees below zero is not something the people want. Online "yes".

With our young people so prevalent , the University of Minnesota right in the city, online options would work and add to the lottery revenue for the state if allowed by the Indian casino management

Show no fear Gov.Its amazing that those politicians who object to the bill have no problem allocating where the taxes from the lottery will go, yet here they are attempting to block something that brings needed revenue to the State.

As a resident of the state of Minnesota since before lotteries came upon the American landscape this is less about the Governor supporting lotteries as it is each branch of government flexing their power.

All three branches of government are held by the Democratic party. This is mostly sibling rivalry since they have no one to fight (Republicians) they have to establish their power within their own party.

Re gambling, the state legislator is owned by the Indian casinos. They dictate gambling within the state. All the politicians are beholding the the tribes for so much money it is not a fair fight.

Buying lottery tickets at the gas pump when it is 20 degrees below zero is not something the people want. Online "yes".

With our young people so prevalent , the University of Minnesota right in the city, online options would work and add to the lottery revenue for the state if allowed by the Indian casino management

I still can't figure out why it's legal to bet on pro football, baseball, basketball, hockey, golf, and MMA fights in Nevada but no where else and the same hypocrisy is found in any state with with online horse racing. It might make sense if it was only on Nevada events, but events anywhere. I can deposit $1000 a day into an account and bet it all on horse races, but I can't play in a $1 online poker tourney.

It's not surprising though when some jurisdictions are legislating the size of soft drink glasses.